Does refinancing make sense without taking cash out? In other words, would the new loan generate enough savings to cover the cost of refinancing? If not, a home equity loan may be a better choice.

Which method is less expensive – a rate-and-term refinance plus a home equity loan? Or a cash-out refinance? Cash-out refinances often come with higher fees than rate-and-term refinances.

Finally, there’s the limited cash-out refinance. The borrower does not usually receive cash from the transaction, but the costs of refinancing are wrapped into this loan. Occasionally, the borrower may receive a small sum when closing if the closing costs end up being less than expected.